GRADED PROJECT
Directions: Be sure to make an electronic copy of your answer before submitting
it to Ashworth College for grading. Unless otherwise stated, answer in complete
sentences, and be sure to use correct English spelling and grammar. Sources
must be cited in APA format. Your response should be a minimum of one
(1) single-spaced page to a maximum of two (2) pages in length; refer to the
“Assignment Format” page for specific format requirements.
Assignment Details: This assignment will include the four-part graded project
described below and 20 multiple choice exam questions covering this lesson,
Manufacturing Accounting. The combined project and exam portions of this
Assignment total 100 points.
You should complete your work for this project at this time and submit it with the
exam questions (available at the Assignments tool).
Part A
(2 points each for a possible total of 6 points)
The following information is given for Tripp Company, which uses the indirect
method.
Net income
Depreciation expense
Increase in accounts receivable
Payment of dividends
Proceeds from sale of equipment
Increase in accounts payable
Decrease in inventory
$20,000
3,000
2,000
2,000
6,000
4,000
3,000
From the information provided, answer the following questions:
1. The cash flow from operating activities is ________.
2. The cash flow from investing activities is ________.
3. The cash flow from financing activities is ________.
PRINCIPLES OF ACCOUNTING 2
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Part B
(2 points each for a possible total of 10 points)
Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2
(rounded to the nearest hundredth).
Year 2Year 1
Net Credit Sales
Cost of Goods Sold Net Income
Cash
Accounts Receivable
Inventory
Current Liabilities
$25,000
$30,000
16,000
18,000
2,000
2,800
5,000900
3,000
2,000
2,0003,600
6,000
5,000
Compute the following:
1. Current ratio for Year 2
2. Acid-test ratio for Year 2
3. Accounts receivable turnover for Year 2
4. Average collection period for Year 2
5. Inventory turnover for Year 2
Part C
(10 points)
Prepare an income statement showing departmental contribution margin based
on the following:
Dept. XDept. YRent Expense
Space (square feet)
Net Sales
Cost of Goods Sold
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17,500
$60,000
35,000
$40,000
18,000
16,000
Rent Expense (allocated based on square feet)
$2,700
PRINCIPLES OF ACCOUNTING 2
Part D
(4 points each for a possible total of 24 points)
From the following transactions, prepare the appropriate general journal entries
for the month of April.
1. Raw materials costing $60,000 were issued from the storeroom.
2. Direct labor of $53,000 was charged to production.
3. Indirect labor costs of $17,000 were incurred.
4. Overhead was applied at the rate of 40% of direct labor dollars.
5. Completed products costing $42,000 were transferred to finished goods.
6. Products costing $32,000 were sold.
PROJECT UPLOAD
Once you’ve completed this assignment, login to the student portal at https://
students.ashworthcollege.edu. To log in, you’ll need the username and
password that you received via email. From the Student Portal page, enter your
username and password (Figure 1). Then click Login.
Figure 1
PRINCIPLES OF ACCOUNTING 2
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